Hypotheses

CFA Level I Quant
#1

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This example is wrong because 2 HYPOTHESES must be mutually exclusive and exhaustive.
In the answer B → H0 would be >=5 rather than > 5
What are your opinions?

#2

I was taught that the null hypothesis always has some sort of equality in it, so I agree with your proposed edit.

And what if the sample produces exactly 5%??? Then what’s the decision??? :roll_eyes:

1 Like
#3

I agree with you

1 Like
#4

Thank you all so much!